- Owned and Operated
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Hello home service operators,
You know that I’m heavy into HVAC, plumbing, and electrical, but that doesn’t mean I’m blind to other industries.
Most recently, I’ve come to learn more about the security and alarm space. And with that, I’ve taken action. The time has come to announce the newest publication in the Owned and Operated fam: Entry & Exit. (subscribe to the newsletter here)
Below, I share details on the first podcast episode with security/alarm veterans Stephen Olmon and Collin Trimble.
But before that, check out these resources…
Want higher booking rates? Everyone does, here’s an immediate solution
AI agent creation among first-mover companies surged 119% between January and June
Avoca customers experience an average of 45% payroll savings and 12% better CSAT scores
The Old Farmer's Almanac is predicting mild conditions in Northeast Ohio for Thanksgiving week (and many other parts of the country)
AccuWeather's experts present their 2025-26 winter weather forecast to help businesses and organizations prepare for what's coming
Spaces in the OAO peer groups are filling up fast. Who’s taking the final few spots?
A Shortcut to More, Higher Quality Leads
Modernize is an efficient and powerful way to generate high quality leads in short order.
Every year, they qualify more than 2 million homeowner leads that are delivered to home service companies in real-time. And best yet, they target bottom of funnel consumers who are ready to purchase.
Ready to learn more?
Watch my podcast episode with Jamie Smith, VP of Marketing at Modernize
You need leads to grow your business. Modernize can keep you busy, day after day. All you have to do is reach out to get started.
The Winning Play in the Security and Alarm Space
Most acquisitions start with a deal. This one started with a whiteboard.
Stephen Olmon and Colin Trimble saw an opportunity in the security and alarm industry. A wave of retiring owners, dependable recurring revenue, and customers who upgrade their systems every 18 months created the right setup for growth.
What did they do?
They bought a company doing under $2 million and scaled it to nearly $6 million in two and a half years. Their strategy focused on buying RMR-heavy companies, cross-selling every service, and expanding within a defined region.
Start with RMR, then expand
Each acquisition begins with recurring monitoring revenue, known as RMR. That revenue anchors the business while opening doors to five scopes of work: burglar alarms, cameras, access control, fire systems, and intercoms.
Customers purchase new security technology about every year and a half. When Alarm Masters buys a company, they gain access to both the monitoring income and a pipeline of installation, service, and cloud contracts. That approach paid off quickly. They grew RMR by 50 percent in their first year through organic sales.
Cross-sell with a coffee drop
Their best sales tactic is simple. The “coffee drop” or “taco drop” starts with an international SDR calling customers to schedule visits. A salesperson arrives with coffee or tacos, checks in on the system, and looks for opportunities.
Two out of ten visits lead to new quotes or takeovers. The rest create stronger relationships and open future opportunities. In an internal review, the team discovered that only one percent of commercial clients used them for more than one scope of work. That means the remaining 99 percent had four other services waiting to be sold.
Lead with fast service
Speed separates Alarm Masters from larger competitors. When a customer calls, they respond with “see you tomorrow.” Other companies make clients wait or require a monitoring switch before helping. Alarm Masters charges the same rate for new and existing customers and focuses on fast scheduling.
This approach builds trust quickly. Seventy five percent of those initial service calls turn into additional work or ongoing contracts.
Grow by region, not by dots on the map
All current operations sit within the greater Houston area. The plan is to expand across Texas into Dallas, Austin, and San Antonio, and then into nearby states such as Oklahoma, Louisiana, and Arkansas.
Their regional model focuses on buying $2 to $5 million platform businesses and scaling them to $6 to $10 million. This strategy allows tighter control of operations, stronger brand consistency, and better coordination across service teams.
Free up sales by centralizing quoting
Salespeople should sell, not estimate. Alarm Masters built a centralized quoting system led by international team members. Their lead estimator, Felix in Nicaragua, now creates designs and quotes more accurately than the founders. He trains others and communicates directly with customers when needed.
This setup frees the sales team to stay in the field, while the back office handles pricing and technical design. It also keeps quality consistent and reduces bottlenecks.
Watch the mix and margins
Healthy growth depends on disciplined unit economics:
Recurring and cloud subscriptions: about 65 percent gross margin
Service: about 60 percent gross margin
Projects: 40 to 50 percent gross margin
Recurring and cloud contracts create predictable income. Service brings steady cash flow. Larger installation projects add bursts of revenue and strengthen relationships. Together, the model supports 15 to 20 percent net margins while maintaining resources for growth.
Buy the right kind of revenue
Strong acquisitions earn 25 to 50 percent of revenue from recurring and reoccurring work. That mix signals loyal customers who rely on the company for monitoring and service.
Olmon and Trimble focus on targets with steady commercial clients, good technicians, and a proven service base. Those accounts convert easily into cameras, access control, and fire system contracts that produce higher margins and longer retention.
Compete through relationships
Large corporations dominate through scale, but they often fall short on customer care. Alarm Masters wins by being responsive and personal. Every client interaction is an opportunity to communicate clearly, solve problems quickly, and update contact details for future service.
This consistent attention builds retention and trust, which drives both long-term revenue and stronger valuations.
Promote leaders and build structure over time
When they bought the company, the team had 13 people. Today, it has nearly 40, including 11 international team members. The first move was promoting a senior technician to operations manager. As the business grew, they added an operations leader, a customer success manager, and a sales manager.
Local managers handle daily operations while headquarters manages HR, billing, and administrative tasks. This structure gives each branch the freedom to perform while maintaining accountability. Colin spent his first 90 days in the trenches learning every role before changing a single process, which created a strong foundation for scaling.
Respect the stakes
Fire systems carry real consequences. A single failure can endanger lives. Olmon often talks about the pressure that comes with protecting schools, churches, and commercial buildings. Each system must function properly and meet code without exception.
This attention to safety defines their standards. Quality work and clear communication protect customers and preserve the company’s reputation.
My takeaway
Alarm Masters built a growth engine around simplicity.
Buy recurring revenue.
Cross-sell every service.
Respond faster than competitors.
Keep sales focused on customers and centralize the work that slows them down.
Grow within a defined region until every account has been touched.
Their success shows that steady execution, local focus, and personal contact can turn a small security company into a scalable operation.
Want to learn more? Watch the entire episode.
Run Your Business, Not Your Software.
FieldPulse keeps your business running smoothly from the first call to the final payment. Every workflow, every job, and every team member stays connected in one place, giving you the visibility and control to move faster.
It’s built to adapt to your operations, not the other way around. Whether you’re scheduling jobs, tracking invoices, or managing crews in the field, FieldPulse scales alongside your business without slowing you down.
When every role performs at its best, growth becomes the natural result. And growth is the ultimate goal. FieldPulse gives your team the tools to work smarter, stay organized, and deliver an experience your customers will remember.
Now that you have all this info, I’ve got a question: can you see yourself acquiring a security/alarm business?
PS: don’t forget to subscribe to Entry & Exit.
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👊 John
Disclosure: Some of the content and links in this newsletter are sponsored or affiliate links, which means we may receive payment or earn a commission if you click through or purchase. However, all opinions expressed are entirely my own.
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